Coping with financial stress during the Covid-19 crisis

There’s no easy way of saying it — the Covid-19 crisis has caused significant financial stress for many New Zealand households and will continue to do so for a long time to come.

However, as stressful as things are now, they will improve in time — this situation is not permanent. In the meantime, there are steps you can take to ease some of the strain on you and your family. As challenging as this moment in time is, you are not alone and money matters are top of mind for many New Zealanders.

The best strategy to regain confidence in your financial situation is to focus on what you can do, rather than being overwhelmed by the things you have no control over.

Now, is not the time to do nothing, so the Debtfix crew has put together an action plan for you to sort out your money.

Take stock of your current financial situation

If the current crisis has you screaming “I need help with my money because of Covid-19!”, rest assured you are not alone.

You need to know what you’re working with so you can make an accurate plan, so start by creating an updated budget to reflect your current finances. There may be obvious areas you can start making savings and even if there aren’t, it’s a good opportunity to reprioritise your spending and get back to basics.

Figure out what is really important to you and not negotiable, and what can you give up, to improve your financial wellbeing.

Check out our Guide to Covid-19 for Employees to make sure you’re getting what you're entitled to from your employer.

If you are struggling to cover the cost of necessities like food, rent, or utilities, you may be able to receive assistance from Work and Income on either a short-term or long-term basis. Find out more on the Work and Income website.

Get your whole team on board

Talking about money problems is one of the major taboos.

We seem happier to talk about sex, mental health or who is dobbing in who for lockdown infringements than we are to sitting down with our family, friends, or an independent mentor about our financial instability.

You have control of your communication. Speaking openly and appropriately with your partner, children and mates will help keep things in perspective.

In your family, you may be pleasantly surprised about what expenses they are prepared to forgo and how they could be part of the solution.

A good mate or mates could well feel they are in the same sinking boat and empathise with your situation. Before you know it – you could be helping each other survive the whole Covid-19 storm.

Right now, there is an immense feeling of community support and the strength we gain from one another will help us find our way to calmer seas.

Create a new plan for managing your current debt

Talk to the organisations you owe money to about what plans they’ve put in place in response to Covid-19. If you are unable to meet your current debt obligations or if you’re concerned that your employment situation is about to change, then contact your creditor/s as soon as possible to discuss your options.

You may want to consider submitting a Hardship Application to your creditor/s, you can find more information about that here.

If you aren’t comfortable talking to them or you aren’t sure what to ask, we’re happy to help or talk to them on your behalf. Contact us helpline@debtfix.co.nz, phone us on 0800 DEBT 101, or kickstart the assessment process here.

There is no shame in asking the organisations you owe money to for some leeway in your repayment plan. They will have plenty of clients needing the same at this uncertain time.

Take care of yourself

Consider creating a schedule for yourself even if you’re just at home all day. It will bring some routine back into your life and help you accomplish everything you need to get done during the day. Schedule in some time each week for managing your money, planning and calling your budget and financial mentor if appropriate.

If you’re feeling overwhelmed by everything going on in the world right now, limiting your news intake to once or twice a day can help lessen that feeling of hopelessness. Regular exercise, a nutritious diet and plenty of sleep are all ways to look after your mental and physical health while you’re at home.

If you’re struggling — mentally, financially or otherwise — don’t suffer in silence. These are uncertain times for everyone and there is no shame in asking for help when you need it.

If you need to talk to someone about your finances, email us at helpline@debtfix.co.nz, phone us on 0800 DEBT 101.

If you need to talk to a trained counsellor, call or text 1737 any time, 24 hours a day.